FXI Dividend Type Payments

Although FXI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares China Large-Cap ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 2:25 PM ET):

iShares China Large-Cap ETF (FXI)

Bid

Ask

Last

Change

Volume

P/E

Market Cap

44.70

44.71

44.71

-0.19

21.1M

-

0.0B

FXI Dividend-Like Income Using Covered Calls

With FXI at 44.71, here's a table showing how big the annual "dividend" (ie. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:

Annual Yield

Annual Premium

Cents/Day

3%

1.34

0.4

5%

2.24

0.6

10%

4.47

1.2

So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples: